POLITICS
Professor Janet Godsell
Charlotte Horobin
‘Short-term priorities should be to focus on sectors that support growth in a more circular economy’
This would protect against the volatile
Taking a lead in the circular economy could be key to giving the Midlands a competitive advantage, believes Prof Janet Godsell. The circular economy model, according to
the Ellen MacArthur Foundation, is based on the principles of designing out waste and pollution, keeping products and materials in use, and regenerating natural systems. As more companies seek to improve their
sustainability credentials, the region’s manufacturers could develop a USP by designing high-quality and reusable goods with long lifespans. Prof Godsell explains: “We consume lots of
stuff and things have got cheaper and cheaper over the years. When something breaks, it’s usually because it’s been cost- engineered down to be as cheap as possible so things like screws are replaced by welds and rivets. “But when it breaks, you can’t repair it and
have to throw it away. This is a challenge because we’re running out of materials so can’t just keep making things and, secondly, we’re not particularly competitive in terms of forward-facing manufacturing processes. “If we want to make things cheap, there are
other places in the world that can make things cheaper. “So a different way of thinking to compete
– which balances the challenges of society, the economy and ensuring we have a prosperous manufacturing community in the region – is to go back to making things that last.” This would involve retraining the
manufacturing focus on longevity and reuse, where materials would only be reclaimed from goods once all possibilities of repair and redistribution have been exhausted – with the added bonus of building up the UK’s stock of raw materials.
IN 1992, PROF Martin Christopher, an internationally-renowned academic in logistics and supply chain management, coined the expression that “supply chains compete, not companies”. But turning this into reality has been a struggle across the world.
THE CIRCULAR ECONOMY
Prof Godsell believes the Midlands has an opportunity “to be right at the forefront” of this ecosystem, highlighting a Repowering the Black Country project as an example of using low-carbon energy sources to reindustrialise the region. But she stresses it will take new ways of
thinking as, despite PPE supplies being sourced more locally during the pandemic, it’s likely businesses will revert to buying goods from countries like China post-Covid due to cheaper costs. “So we need a new competitive advantage,”
she adds. “At the moment, we’re the largest net importer of carbon in the world because we basically offshore the problem. “As we start to take into account the cost of
carbon, there’s a real opportunity to actually think about how we can again manufacture in the UK – and in our region.”
While there’s many different perspectives in
defining what a supply chain even is, Prof Godsell believes creating a regional end-to-end supply chain would give the Midlands a competitive edge and help close the productivity gap.
demand and supply shortages witnessed during the pandemic, as well as the trade issues – including increased tariffs, customs delays and longer lead times – arising since Brexit. But Prof Godsell admits it’s easier said than
done, adding: “While the Midlands region is concerned about issues of productivity, sustainability, employment opportunities, economic growth and foreign direct investment, firms have other priorities. They’re concerned about competitive advantage, operational continuity, efficiency, cost reduction, collaboration and agility. “There’s no joining of those two sets of
objectives and there’s a language void between them. “So perhaps the link between those regional
measures around labour productivity and employment, and the business-level measures of cost, quality and time, is to use the supply chain at a regional level to bring the two together.” Although it begins with looking at resources –
issues such as skills shortages, lack of investment, poor cashflow and limited production capacity – breaking down silos and enhancing digital visibility will create an alignment between businesses that cuts down waste, while ultimately improving resilience and productivity. Short-term priorities should be to focus on
sectors that support growth in a more circular economy, invest in infrastructure to enable low- carbon and connection regional supply chains, develop skills in the fundamentals of manufacturing and supply chain management, and create the visibility and co-ordination that enables supply chains rather than businesses to compete. In the long term, Prof Godsell believes this will
feed a vision of “the Midlands as a factory” to the rest of the world with green growth at its core. “This technological shift will make distributed
manufacturing the norm and have a huge levelling effect that breaks down barriers between OEMs and SMEs,” she adds. “By harnessing the amazing potential we have in the Midlands, we can become the most supply chain-savvy region in the country.”
business network June 2021 45
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